WikiWealth

Japan's government debt is mostly serviced by the large domestic population of savings. These savers invest their money with the government and receive a very low increase rate in return. This rate is derived from the high demand for Japanese debt, but this trend might will change over time. As Japan's population ages, they will run down their savings and in turn, have less money to purchase Japanese debt. This decrease in demand will increase the interest rate paid by Japanese government. As interest rates increase, so will the threat of a fiscal crisis in Japan. …